Question

Suni consumes blueberries and cream but only in the fixed ratio of three boxes of blueberries...

Suni consumes blueberries and cream but only in the fixed ratio of three boxes of blueberries to two cartons of cream. At any other ratio, the excess goods are totally useless to him. The cost of a box of blueberries is $10 and the cost of a carton of cream is $10. Suni’s income is $200. How many boxes of blueberries and cartons of cream will Suni demand?

PLEASE SHOW ALL WORK

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Answer #1

Answer : Given,

Suni's consumption ratio = 3 blueberry boxes / 2 carton cream boxes

Suni's income = $200.

Based on Suni's income and given prices if Suni purchase 12 blueberry boxes and 8 carton cream boxes then Suni's total cost = (12 blueberry boxes * $10) + (8 carton cream boxes * $10) = 120 + 80 = $200.

At 12 blueberry boxes and 8 carton cream boxes the consumption ratio of Suni becomes = 12 blueberry boxes / 8 carton cream boxes = 3 blueberry boxes / 2 carton cream boxes.

Therefore, at $200 income level Suni will demand for 12 blueberry boxes and 8 carton cream boxes.  

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